Car insurance won't pay out? Criminal record

clarbar

Hi , Im asking this for my Older sister . A few months ago her car was burnt by vandals in a quiet area of the city. She has received a letter from the insurance company that she was insured with and it now states that since she had a criminal record before that they are now not willing to pay out what she claimed from insurance.

Note she has not had any road traffic offences or penalty points .

The insurance company want to pay back the amount that she paid for her insurance at the start of the year and have now cancelled her insurance?


Can anyone tell me if this is legal or ? Thanks

3DataModem

If they asked her to declare any convictions, and she failed to, they can void it.

dotsman

Was there any mention of "past convictions"/"Criminal record" etc on the application form when she first applied for insurance?

Was there anything on the application form regarding her criminal record?

If so, what did she state at the time?

clarbar

Hi thanks for the replies, there was no mention of anything like this when she applied and afterwards paying for the insurance.

Only declaration of road offence and or penalty points or any claims made. Yet three months later after the car incident they have decided to cancel the insurance and sent a letter saying that they will not pay due to her criminal offences which occurred over three years ago which has no link to traffic offences.

They want to give her back the fee from what she paid for her insurance at the start of the year , but she has refused this and they are saying they will not pay due to her past criminal offence.

Is there anything we can do ?

K.Flyer

clarbar wrote: »

Is there anything we can do ?

Best thing is to speak with a good solicitor.

thebiglad

clarbar wrote: »

Hi thanks for the replies, there was no mention of anything like this when she applied and afterwards paying for the insurance.

Only declaration of road offence and or penalty points or any claims made. Yet three months later after the car incident they have decided to cancel the insurance and sent a letter saying that they will not pay due to her criminal offences which occurred over three years ago which has no link to traffic offences.

They want to give her back the fee from what she paid for her insurance at the start of the year , but she has refused this and they are saying they will not pay due to her past criminal offence.

Is there anything we can do ?

I would expect that is unlikely - get a copy of the statement of facts (or proposal) which you signed with the insurer or insurance broker before spending money on a solicitor - any Solicitor is going to need you to get this anyhow.

The insurer at your request must demonstrate to you that they were entitled to void the policy.

dotsman

I agree - I'd leave the solicitors out of this for the moment until the facts have been established.

Once they do provide an explanation, if you still think there are grounds to complain, your sister should do so formally with the insurance company. Once the complaint is lodged, then the insurance company has to follow certain procedures. If the result is not favourable and their are reasonable grounds to continue with the complaint, you can take the matter to the ombudsman.

How much is the insurance claim for? If it's just for few hundred/thousand, going down the solicitor route could end up costing a lot more. At least the ombudsman route is free (and just as likely to be effective)

wmpdd3

Could it be contained in the 'assumptions' that you aggree to when you ask for a quote, I have recently re-read the assumptions on the website that I have my insurance and I'd be surprised if most people can honestly tick the box.

Has she been insured with the same crowd for a few years and clocked up a conviction during this time? Maybe thats what they mean by disclosure. Terrible situation.

oldyouth

clarbar wrote: »

Hi thanks for the replies, there was no mention of anything like this when she applied and afterwards paying for the insurance.

I'd say it was there, either in the assumptions or expressly stated. Go on to the website of that company and put in a dummy quote to see what way they do it.

A criminal record is material to the insurer and they look out for those related to theft, arson, handling stolen goods, joy riding, selling drugs etc as they can have a bearing on motor claims.